UNIT 7 ",'...

I
LABOUR
•. _. . .

. Structure
7.0 Objectives

7.1 Introduction

7.2 Size and Compo~~lon of Labour Force

7.2.l Occupation-wise Distribution

7.2.2 Growth of Agricultural Labour in India

7.3 Characteristics ofAgricultural Labour

7.4 Economic Conditions of Agricultural Labour

7.4.1 Land Ownership

7.4.2 Wages and Income

7.43 Unemployment

7.4.4 Social Deprivation and Social Security

7.S· Causes ofthe Growth of Agricultural Labour

7.6 Government Measures of Support

7.7 Acts Protecting Agricultural Labour

7.7.1 Workmen's Compensation Act, 1923

7.7.2 Minimum Wages ACt, 1948

7.73 Maternity BcnefitAct, 1961

7.7.4 Equal Remuneration Act, 1978

7.7.5 Bonded Labour System (Abolition) Act, 1976

7.8 Schemes and Programmes for Betterment of Agricultural Labour

7.9 New Economic Policy and Agricultural Labour

7.10 Let Us Sum Up

7.11 KeyWords

7.12 Some Useful BookslReferences

7.13 Answers/Hints.to Check Your Progress

7.0 OBJECTIVES
After reading this unit, you will be able to:

• describe the size and composition of agricultural labour in India;

• explain the economic conditions in which agricultural labour lives in India;

54
• discuss the steps taken by the government to help this section of the society; Labour

and

• list the various laws, schemes and programmes designed to protect the interest
of agricultural labours.

7.1 INTRODUCTION
TIle Indian economy is predominantly agrarian in nature. Agriculture continues to be
the most dominant employer. One should remember that the poorest of poor in
India are overwhelmingly concentrated in rural areas, engaged in agriculture and
non-agricultural occupations. They are mainly labour households, comprising wage
labourers as well as self-employed. petty cultivators ..The landless labour, the village
artisans and the small and marginal farmersare the most vulnerable among the rural
population. Among these, the landless labour, i.e., the agricultural labour is at the
bottom ofthe ladder.

Continuity andstability of employer-employee relations are virtually absent in the

agricultural sector, 'Even the kind of work a person does may vary from season to
season or ev.en from day to day. Dire poverty, absence of stability of employment,
lack 0 formal employer-employee relationship and the seasonal nature of work
make it extremely difficult, ifnot impossible for agricultural labour to build organisations
on trade union lines like its counterpart in the organized sector. In the present unit,
we address ourselves to the problems being faced by agricultural labour.

7.2 SIZE AND COMPOSITION OF LABOUR

FORCE
Labour in the agricultural sector is classified into three main categories:

• Cultivators, i.e., those who work on their own, leased or mortgaged land for
themselves.

• Agricultural labour, i.e., those who work on another person's land for wages
for money, kind or share.

• Workers engaged in forest, fishing and livestock, etc.

Labour in agriculture, alternatively, on the basis of the number of days worked during
a year are also classified as (i) main workers, and (ii) marginal workers.

Main workers are classified as those workers who work for more than 183 days
m a year.

Marginal workers are classified as those workers who work for less than 183
days in a year.

Workers in the rural sector estimated at 310.66 million in census 2001, constitute
more than 77 per cent of the total work-force in the economy, as would be clear
from Table 7.1.
55
Resources in Agriculture Table 7.1: Main and Marginal WorkersInvolved in Agriculture Activities in
Rural India

.. ..
Total' .,·Mafu Marginal Main Marginal
-
'Wo'rkers Workers Workers Workers to .Workers to
•Persons Persons Persons . Total Total
(M+F) {M+F} .. (IV1+F) Workers . Workers
(Per cent) (Percent)

India- Census 1991 (persons in millions)

Total 314.13 '285.93 28.20 9l.02 8.98

Rural 249.03. '222.29 .26.74. 89,.26 10.74

.',
tlrban '. 66.10 . 64:Q4.. 1;46 97:79 221
..
India - Census200 I (p~rson.s inmillions) . ..
Total .:" 402.51 313.17' 89J4 ", ,17:8U. 22.20

Rural 310.66 229.67 ·80.98 73.93. 26.07 .'

Urban 91.86 :8$.50 8J6 ·'90;90 9.10

..
. .. .'

Source: Ce~sus ofIndia 200I~ndwwW.indiastat.com

• . • ". '. . . if .

M = Males, F = Females

It would be further seen from Table 7. i as follows:

. .
1) .Whereas the number of worker in the economy as a whole increased by about
28 per cent rl~gthe inter-census decade, workers in the rural sector increased
. by about 20per cent, indicating a shift of work-force from the rural sector to
the urban sector during the period.

2) Main workers constituted 91.02 per cent of the total 'work force in the 1991
census. In the 2001 census, the proportion came down 77.80percel1t; i.e., to
the number ofmargirialworkershas increased at amuch faster ratethan the
groWthiateof~he,*ork'"force. ' ,

This tre~d'of~~wirig marginalization.ofthework- force, i.e.:.th~ declining proportion

of main workers and the corresponding risingproportion'of the marginal.workers
has been common
"..,.
to .
'
both
.
the' urban
".. sector arid the rural sector of theeconorny.
'., . '
In the 1991 census, only 2.21 per cent of the total work force inth~ urban sector
was classified as marginalworkers; this proportion mcreased to 9.1 Oper cent' in the
urban sector. The ab;ofute number of
marginal workerS. ill the urban sector increased
about foUr-fold
. ~ from about 1:46
.. miliiorrin' 1'991 to 8.36 mifli~nin 2001 census. . .'

.: ''>. .

Likewise, in the rural sector the proportion of marginal workers in the total work
force increasedfrom about 10.74 percent in the 1991 census to 26.07per cent in
the 2001 census. In absoluteterms.the numberof marginal workers in the rural
sector increased from 26.74 million in the 1991 census to 80.98 million in the 2001
census.

Among the marginal workers, there were more women than men. In 2001, there
were 51.12 million female marginal workers and only about 30 million male marginal
56
 workers in rural India. The composition of main to marginal workers among femali Labour
workers changed from 70:30 in 1991 to 54:46 in 2001. The composition of the
male workers is still heavily tilted towards main workers= from 98:2 in 1991 to
85:15 in 2001.

A decade ago, almost allmarginal workers were women. In the past decade,
male worker is also being marginalized. The share of female workers among the
marginal workers has come down from 91.38 per cent to 63.12 per 'Centover the
past decade. The share of men among marginal workers increased from 2 per
cent in 1991 to 15 per: cent in 2001. The rural distress in thepast decade has
forced more men to accept marginal work so much so that male workers
categorized as marginal workers more than doubled.

Primarityrwork opportunities did not keep pace with the demand for work in the
economy as a whole and particularly in the rural sector. Being poor, people
accept evert marginal work rather than remaining unemployed, Hence the share of
marginal workforce has increased. '
, '

7.2.1 Occupation-wise Distribution

As earlier s;ated, workers in the rural sector are engaged in diverse activities, like
_, cultivation', household (HH) industry, and other allied activities. 'Among these
different activities, agriculture is the single most important contributor of
.employmcnt in the rural sector and more so to the rural women, as would be
seen from Table 7.2.
Table 7.2: Distribution of Agricultural Labour
(persons In million)

Particulars Cultiva- Percen- Agricul- ' Percentage House- Percent Other Percent Total
tors tageof tural of hold ofHH Workers of Other Workers
Cultiva- Labour Agricul- (HH) Industry Workers (Main+
tors to tural Industry Workers to Total Marginal)
Total Labourers to Total Workers
r'.

Workers to Total Workers

Workers

Male 84.05 (42.19) 54.75 (27.48) 5.64 (2.83) 54.76 (27.49) (199.20)

Percentage. of (67.40) (53.09) (48.18) (76.97) (64.12)

male
cultivators to
total
cultivators

Female 40.64 (36.45) 48.37 (43.40) 6.07 (5.44) 16.38 (14.69) (111.46) .
'.'

Percentage of (32.59) (46.90) (51.81 ) (23.02) (35.87)

female
cultivators to ,
total
cultivators

Persons 124.68 (40.13) 103.12 (33.19) 11.71 (3.76) 71.14 (22.90) (310.66)
(M+F)

Source: Census of India, 2001

57
Resources in Agriculture It would be seen as follows from Table 7.2:

1) About 73.32 per cent of the total rural work-force finds its subsistence in
agriculture (Cultivators+Agricultural Labour), Household industry contributes
only about 3.76 per cent of the total employment, whereas the other activities
account for about 22.90 per cent:

2) The workers engaged in the agricultural activity are classified into two:
(i) cultivators and (ii) agricultural labourers. Cultivators are defined as those
workers who work on their own, leased or mortgaged land for themselves.
Agricultural labourers work for others for wages in money, kind or share.

3)· Cultivators constitute 40.13 per cent ofthe total work-force in the rural sector,
whereas agricultural labourers constitute another sizeable share of3 3.19 per
cent. In absolute terms, cultivators number 124.68 million in the 2001 census,
whereas agricultural labours were counted as 103.12 million.

7.2.2 Growth of Agricultural Labour in India

A person is considered as an agricultural labour ifhe follows any or more of the
following operations in the capacity of a labourer on hire or on exchange, whether
paid in cash, in kind or partly in each:

• farming including cultivation and tilling of the soil;

• dairy farming;

• production, cultivation, growing and harvesting of any horticultural commodity;

• raising oflivestock, bees or poultry;

• any practice on a farm as incidental to or in connection with the farm operations

and the preparation for the market and delivery to storage or to market or to
carriage for transport to market of farm products.

The number of agricultural labourers in the Indian economy has been continuously
rising. It has exhibited a fairly long-term trend. The Famine Commission, 1880,
struck one of the earliest warning notes about the growth of surplus population on
land. It was the cumulative effect of a large number of factors like land tenure,
monetisation and commercialization of agriculture and decline of handicrafts, etc.
During the post-independence period the ranks of agriculture labour continued to
swell, as will be clear from Table 7.3.

Table 7.3: Growth of Agricultural Labour in India (in lakhs)

Year Number Year Number

1881 75 1961 320

1891 187 1971 480

1911 216 1981 555

1931 299 1991 747

1951 280 2001 1031

Source: Census Reports
58
Table 7.3 brings out the. fact that the number of agricultural labour in Indian economy Labour
has been increasing. The above result can also be documented in the form of an
increasing proportion of agricultural labour to the total work force of the country, as
can be seen from Table 7.4.

Table 7.4: Proportion of Agricultural Labour to the Total Number of Workers

..Year Percentage Share

1901 16.90

. 1921 17.40

1951 19.07

1971 26.33

1981 26.15

1991 26.20

2001 26.69

Source: Census Reports

Inter-state Variations in Labour Composition

The proportion of agricultural labour to the total number of workers is not uniform
throughout the country. Against the all-India average of 26.69 percent, the proportion
of agricultural labour to total workers was as small as 0.11 in Chandigarh, 3.52 per
cent in Himachal Pradesh, and 0.30 per cent in Delhi, etc., and as high as 48.18 per
cent in.Bihar, 39.63 per cent in Andhra Pradesh, 25.66 per cent in Kerala, 31.16
per cent inTamil Nadu, etc. In all those states where agriculfure forms a significant
part of econoinic activity, agricultural labours are found in large numbers.

Another way to look at the problem is to examine the trend in the proportion of
agricultural labour households to total rural households. The First Agricultural Labour
Enquiry (ALE) reported this proportion as 30.4 in early 1950s; the Second
Agricultural Labour Enquiry put it at 24.5 per cent in 1956..,57. The First Rural
Labour Enquiry (RLE) Committee determined this proportion at 21.8 per cent,
while the Second Rural Labour Enquiry noticed a marked rise to 25.3 per cent in.
1974-75. The data are indicative of the fact that about a quarter of the total rural
households belong to the category of agricultural labour, These trends are indicative
of growing landlessness, casualisation and marginalisation in the Indian rural sector.

7.3 CHARACTERISTICS OF AGRICULTURAL

LABOUR
There are certain peculiar characteristics of agricultural labour that help us to distinguish
as
them from industrial labour. These are follows:

I) Agricultural labour is unorganized: Unlike industrial units, agricultural workers

need not work in unison. A lack of contact between workers makes it impossible
to develop any meaningful organisation.
59
Resources in Agriculture 2)':' Agricultural labours are basically unskilled: They may not be skilled even in the
art of cultivation. Consequently, their supply is perfectly elastic and therefore
whatever they earn is in the nature it transfer earnings. The employeroften uses
this position to his personal gain by contracting to pay less than what the market
forces would have warranted,. otherwise.
-".}

3) Agricultural labour is migratory in character. It can be drawn from a distant

place to the place it works during a busy season.

4) The employer of agricultural labour himself may not be a person of high means.
This will be a situation when a small.farmer employs another small farmer who'
may not have sufficient work to do by himself. A direct contact, therefore,
between the employer and the worker is a distinct characteristic of agricultural
labour.

5) Agricultural labour is hardly covered by any rules and regulations. Law, if at all
it exists, is flirt more often than it is observed.

In brief, it may be observed that the situation of an agricultural labour differs

substantially from that of an industrial labourer; he is an unorganised lot, his bargaining
power is weak and generally, the supply of agricultural labour exceeds its demand.

7.4 ECONOMIC CONDITIONS OF

AGRICULTURAL LABOUR
Agricultural labour is at the bottom in the socio-economic set-up of the rural society
as would be seen from the following discussion.

7.4.1 Land Ownership

A major part of agricultural labour households do not own any land. As per the 32nd
round of the National Sample Survey (NSS), about 51.37 per cent of the agricultural
labour households did not own any land. The average size ofland cultivated per
"agricultural household was 1.33 acre only.

7.4.2 Wages and Income

Due to the mixed character of occupations in the rural sector, non-agricultural labour
is available for agricultural operations when needed. TIle employment of agricultural
labour may either be casual or seasonal. In case of casual employment, worker
- work on daily wages and for specified operations of short duration, They are
employed during peak agricultural seasons. Seasonal workers attend to routine I

operation all the year round and are often employed on oral or written contracts for
three or six months or even a year. Thus, seasonal workers have seasonal contracts
-, with a provision that they may work elsewhere when there is no work either on the
farm or in the home of the employer. Some employers advance wages to them on
the understanding that the latter remain in service for a certain period. Wages in kind
form a very insignificant part of the agricultural wage-system and it true for all
economic groups, the only exception being the attached worker whose wages "are
sometimes paid in kind.

The low yield, sub-divided and fragmented holdings, absence of scientific methods
of cultivation, prevalence of burdensome agricultural debt and possibility of
60
 employment of women and children and inadequate off-farm employment Labour
opportunities have been some of the factors that affect the wage levels of agricultural
worker in the country. Wages are also affected by social factorslike customs and
traditions. Again there have been variations in wage levels depending on personal,
regional and seasonal factors. Further wage of attached workers have been lower
than those of seasonal workers which, in turn, have been lower than those of casual
labour.

The majority of agricultural labour in many parts ofIndia have very low level of
earning and are forced to live inconditions of abject poverty. Their income falls
much short of minimum desirable expenditure. This forces them to borrow money
and puts them under heavy debt. Because of increasing pressure of population on
agricultural land, seasonal and uncertain nature of agricultural employment and
existence of voluntary or involuntary unemployment and underemployment, the
workers live under tremendous pressure.

As per the NSS estimates, 52.32 per cent of agricultural labour households were
indebted at national level. The percentage of indebted households were observed to
be higher than the national level inmany states; like Andhra Pradesh, Haryana,
Jarnmu and Kashmir, Kerala, PUnjab, Rajasthan and Tarnil Nadu. The highest
proportion was found in Kerala (80.70 per cent) and lowest'in Assam (11.75 per
cent). The total outstanding debt per household at the all-India level was reported to
be R~. 680. The highest (Rs. 1,808) was in Rajasthan and the lowest (Rs. 244) in
West Bengal.

No wonder, the standard of living of agricultural labour is degrading. The abject

poverty, which is largely the consequence ofa meagre income level, haunt every
aspect of their living. This can be quantified in termsoflow consumption on the
- other. As is to be expected, food forms the most significant item of consumption
expenditure of these households. As per the Agricultural Labour Enquiry reports,
these households spend 85.3 per cent of their income on food, 6.3 per cent on
clothing and footwear, and 8.4 per cent on services, is indicative of extreme
backwardness and unemployment.

7.4.3 'Unemployment

Successive development plans in India have not generated sufficient gainful

employment. The backlog of unemployed persons continues to increase. In many
parts of the country, there is a heavy pressure of population on land. Employment in
agriculture is characterized by factors such as the abundance oflabour, the extensive
use of family labour, the decreasing average size ofland holdings and seasonality of
demand. '

It is important to note that the incidence of unemployment among the agricultural

labour varies according to the type of work. The agricultural labour is generally
landless and therefore, depends mainly on wage employment. The agricultural
economy is unable to provide continuous work to the people throughout the year.
The slack agricultural season frequently extends from three to six months. As per
various estimatesrnade.agriculturallabour remains unemployed for more than four ,
months a year. This is the period when he is forced to borrow and fall in debt. Once
in debt, he finds it hard to get out of this bondage;
61
Resources in Agriculture The hours of work in agriculture depend upon natural factors. The working conditions
obviously are fixed by nature. Since they have to work in the open they work both
in sun and rain.

The growth of population.the pace at which non-agricultural activities are developing

within and outside the rural economy and frequent recourse by owners of land to
personal cultivation have tended to increase the strains of poverty on tlJ.eagricultural
labour. While on the one hand, the supply of agricultural labour is expanding due to
the growth of population, on the other, their demand is declining due to mechanization
of agriculture. In such a situation unless non-agricultural or non-farm employment
increases, the employment situation would remain grim.

The chronic under-employment on the part oflarge number oflandless agricultural

workers is a long-term problem. Very low wage levels and low levels of productivity
are symptoms of this problem. A permanent and long lasting solution can be achieved
only by the development of a system of scientific, diversified and assured agriculture,
the building up of wide range of small and processing industries in rural areas, rural
electrification, the growth of new skills and general economic and industrial
development. .

7.4.4 Social Deprivation and Social Insecurity

The entire rural power structure is loaded against the agricultural labour. Property,
caste, education, power, accesses to the bureaucracy, policeeven to the judiciary,
are all concentrated on one side against which labour has to contend. All kinds of
disabilities, poverty, lack of assets, illiteracy, low caste, malnourishment, surplus of
work seekers are all on the side of agricultural labour making its transactions with
the other side wholly one-sided.

Social deprivation and insecurity arise mainly due to the following:

1) The first Il?-ajorsource of deprivations is the lack of adequate employment,

which is mostly chronic unemployment.

2) The second source of deprivation is observed to be the loss of income or

income insecurity due to the loss of assets or due to drastic reduction in the
productivity of assets arising out of natural calamities, accidents, cattle deaths
and soon.

3) The third source of deprivation is the exploitative dependence Of the poor

agricultural workers on the rich. It is observed that this dependenceis Usually
for support in the lean season when enough food is not available; for loans in
the event of sickness / death or carrying out social functions such as marriage,
death, birth, etc. They pay high interest rates and often get trapped into a long
term debt situation and thus lose the freedom of mobility.

4) Agricultural female workers need some specific support against stoppage 'of
income due to maternity and baby care. They also get less wages than male
labourers. They, therefore, need maternity leave and medical support during
maternity as well as creches and childcare centres.

5) Among the agricultural labourers, some other vulnerable groups are old age
people and widows.
62
 Labour
7.5 CAUSES OF THE GROWTH OF
AGRICULTURAL LABOUR
In the post-independence India, the primary impetus to the growth in the ranks of
agricultural labourers has come from the land reforms programme. The net effect of
the implementation ofland reform laws on the labouring class has been, as U sha
Patnaik (Social Scientist, July 1983) put it, "To perpetuate the old, semi-feudal
forms of bonded and attached labour on an increasingly more monetized basis while
providing on impetus towards capitalist production for profit." The ranks oflandless
were swollen by evictions and market integration of tribal areas, coupled with the
replacement of tribal system of tenure by individual system, has led to growing'
landlessness, loss of food security and increasing deprivation ofthe access of tribal
to employment and incomes in forests. The new developments are also creating a
sub-stratum of new classes among the tribal aligned with the elite from non-tribal
groups.

Among other causes that account for the rapid multiplication of agricultural labour
and their present degrading situation, the following may be considered.

1) A rapid growth of population is the primary cause. As employment opportunities

in both the rural and the urban areas are limited, more and more people fall
back upon land for their subsistence. Most of them have a zero-reserve-price
tag on them to stay alive.

2) Frequently, the advantage ofthe situation is taken by landlords who exploit the
labour fully. Only if a part of the available supply of agricultural sector could
have been diverted to the non-agricultural activities, the situation would have
acquired a different complexion altogether. It would have had two effects: (i)
labour would have had alternative employment opportunities to look to, and
therefore, could have some locus standi in bargaining with the employer; (ii) it
would have a salutary effect on landlords in as much as they could not have
taken for granted the supply oflabour that matched their requirements.

3) Real wage rate is determined by the mode of payment, i.e., whether the payment
is made in cash or kind, the system of payment of wages in kind is being
increasingly replaced by cash and monetisation of the agrarian economy. The
substantial part of wages during the harvest is paid in kind which keeps the
deteriorating standards in check to some extent.

4) . Unlike the industrial worker, the agricultural labour is not organized. His
employment is more a matter of personal whim ofthe employer. The situation
is frequently exploited by the employer. Wherever the labour has been organized
as in Kerala the results have been generally encouraging.

5) The state in India has

.
generally been lukewarm to the problems of agricultural
\

labourers. In some other countries where similar situations arose, the state
intervened to protect the interest of labourers by adopting both restrictive and
promotional measures. Restrictive measures have generally taken the form of
legislation so framed that it could ensure minimum wages and tolerable living
conditions. Promotional measures have taken the form of imparting training
and skills and exploring alternative employment opportunities for agricultural
63
Resources in Agriculture labourers. In India, though the state has been aware of this widespread and
serious problem, it has not done much beyond enacting legislation to protect
the interests ofthe labourers, except perhaps in Kerala. As we shall see in the
next section, much of this legislation has not been paid any attention and has
been frequently flouted without any deterrent.

Check Your Progress 1

Note: a) Use the spaces given below for writing your answers.
b) Check your answer with those given at the end of the unit.

. 1) Discuss the occupational distribution of agricultural labourers.

2) Write two important characteristics of agricultural labour.

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 0°•••••• °0
••••••••••••••••• ~ •••••••••••••••••••••••••••••••••••••••• :'0 •••••••••••

••••••••••••••••••••• ~ ••••• : ••••••••••••••••••••••••••••••••••••••••••••••••••••• 0" ••••••••••••••••••• ; ••••••••••

3) Enumerate two important factors responsible for poor economic conditions

of agricultural labour.

7.6 GOVERNMENT MEASURES OF SUPPORT

Agricultural labour constitutes a significant proportion oftotal agrarian work-force.
The state assistance to improve this section of society has proceeded along the
followinglines:

(a) Fixation of Minimum Wages

The Minimum WagesAct which empowers the government to fix minimum rates of
wages payable by employers is applicable interalia to agricultural workers also.
The Act has been extended almost to the whole of the country and accordingly
minimum wages for agriculturallabourershave been fixed.However, the enforcement
of the provisions of tills Act has not been feasible. The task of enforcing minimum
64
 wages in agriculture, as the National Corrunission on Agriculture point out, does not Labour
have any feasibility features like identifiability, enforceability and terminability as are
characteristics of the organized industrial sector. In any case, enactment of minimum
wage legislation or even its enforcement is not likely to solve the problem of agricultural
labour against a background ofless demand from and more supply of such labour
and the absence of unionization of agricultural labourers. The increase in the number
of persons depending on agriculture for wage employment appears to be largely an
involuntary shift into this occupation rather than due to increased employment
opportunities in agriculture. There is, therefore, the problem of providing either the
means of production including land or employment.

(b) Special Area Programmes

.Duringthe earlier stages, the govemment had conceived of community development
programmes as instruments of rural transformation that would include amelioration
ofliving conditions of agricultural labourers too. However, it was found more viable
to carry out such programmes more intensively in selected districts and areas.
With this view a number of special area programmes were conceived: among
thema specific mention need be made of Small Farmers Development Agency
Programme, etc.
(c) Land Reclamation and Settlement
Land reclamation measures have been intensified in different parts ofthc country.
Land so secured has been distributed among the landless agricultural labourers.
Similarly, resettlement schemes have included provision ofland to this class of workers,
- credit facilities and other schemes which can prove effective instruments of their
upliftment, among these schemes, a specific mention need be made of the Bhoodan
movement. TIns movement aimed at a solution of tile problem ofland1css agricultural
.labourers by a redistribution ofland on a voluntary basis. The movement, however,
failed to solve the problem in a big way.
(d) Rural Employment Programmes
Special programmes for rural employment have been launched in five-year plans.
The basic function ofthese programmes has been to organise labour-intensive works
on a large scale with the primary objective of providing employment opportunities
to the rural area. The projects undertaken in these programmes generally include
road-building, reclamation and development ofland, drainage, embankments, water
conservation and ground water recharging, minor irrigation, soil conservation,
afforestation and special repairs, etc. However, the total impact of these programmes
so far has touched only a fringe of the problem. Further efforts are necessary in this
direction.
(e) Abolition of Bonded Labour
The Bonded Labour System (Abolition) Act, 1976, has been enacted. Under this
Act, every bonded labourer stands liberated and discharged from all obligations to
render bonded labour. As with other legislative measures, this piece oflegislation
has also fallen through because oflack of enforcement. Little wonder, the system of
bonded labour continues to flourish.
(t) Insurance

The Life Insurance Corporation ofIndia (UC) has introduced a Group Insurance
. Scheme winch covers all agri cuItural labour families. Under+« s::!~':!!11elife insurance
65
Resources in Agriculture is being offered to the bread-earner of the family in the age group of 18 to 60 years.
•
The premium under the scheme is only Rs. 10 per annum for an insurance cover of
Rs. 1,000. The premium is paid by the Central Government.

(g) Finance Body for Backward Classes

The National Backward Classes Finance and Development Corporation has been
established with a sum ofRs. 25 crore as share capital to assist persons belonging to
backward classes by way ofloans and finances for economically and financially
viable schemes and projects. The corporation also aims at generating self-.
employment, granting concessional finance and help upgradation of technical and
entrepreneurial skills of backward classes. It also assists state level organisations for
development of backward classes.

7.7 ACTS PROTECTING AGRICULTURAL

LABOUR
Efforts for protecting the socio-economic interests of the agricultural labour were
initiated in the pre-independence period. However, it was given utmost priority in
the post-independence period. This is well evidenced from the various provisions
incorporated in the Constitution of India to safeguard the interests of the poor. Apart
from this, a large number of'legislations were also enacted to achieve the objective
of social and economic justice. Some of the important Act enacted in this regard
include Workmen's Compensation Act, 1923; Trade Union Act, 1926-;Minimum
Wages Act, 1948: Maternity Benefit Act, 1961; Contract Labour (Regulation &
Abolition) Act, 1970; Bonded Labour System (Abolition) Act, 1976; Equal
Remuneration Act, 1976; and the Inter-state Migrant Workmen (Regulation of
Employment and Conditions of Service ) Act 1979. The basic laws of the land also
provide certain guarantees in the form of Fundamental Rights to all the citizens of the
COW1try.

7.7.1 Workmen's Compensation Act, 1923

The Act is applicable to workers both in the organised and unorganized sectors.
The Act is however not applicable to those workrnerrwho are working on casual
basis. Similarly, in order to get the benefits under this Act the existence of the
relationship of employer and employee should be proved. This law provides for
compensation in case of injuries due to accidents' during and in the course of
employment'. 'During and in the course of employment' means not only at the work
place but also while gOilWto and COining back from the place of work. The employer
is also liable to pay compensation under the act for occupational diseases as specified
under the act. Compensation to a workman or his dependant is payable in proportion .
to loss of eaming capacity which depends on loss oflimb of the body and 'age of the
person at the time of the accident, etc.

7.7.2 Minimum Wages Act,_1948

The law provides for the fixation of minimum rates of wages in certain employments.
The power to fix minimum wages has been given to the appropriate government.
The law also provides for revising the minimum rates of wages from time to time.
The wages under the Act may be for time work, known as a 'minimum time rate' or
for piece work known as a 'minimum rate'.
66
In fixing or revising minimum rates of wages under this Act: Labour

A) Different minimum rates of wages may be fixed for:

i) different scheduled employments;
ii) different classes of work in the same scheduled employment;
ill) adults, adolescents, children and apprentices; and
iv) different localities.
B) Minimum rates of wages may be fixed by anyone ormore of the following
wages periods namely:
i) by the hour
iI) by the day
ill) by the month, or
iv) by such other larger period as may be prescribed.
There are two methods for fixing or revising the minimum rates. Oneis byconstituting
connnittees and another is by notification in the official gazette. This law also provides
for fixing hours for a normal working day in regard to any scheduled employment, in
respect of which minimum rates of wages under this Act have been fixed. For the
overtime work the wages to be paid are at the rate of twice for non-agriculture
work and one and a half for agriculture work.
7.7.3 Maternity Benefit Act, 1961
The Maternity Benefit Act is legislation enacted to promote the welfare of the working
women. This Act applies to every establishment belonging to the Government and
all other establishments employing women. This act was made applicable in mines in
1963. The Act prohibits the working of pregnant women for a specified period
before and after the delivery and this period is six weeks prior to the delivery and six
weeks after the delivery. This Act also provides for maternity leave and payment of
certain monetary benefits for women workers during the period when they are out
of employment on account of their pregnancy or any illness etc., arising out of
pregnancy. The Act provides that services of a woman worker cannot be terminated
during the period of her absence on account of pregnancy.
7.7.4 Equal Remuneration Act, 1978
The Act provides of same remuneration for same work or work of similar nature to
both men and women workers and seeks to prevent discrimination on grounds of
sex in terms of payment for the work done. This Act also seeks to fulfill the
constitutional objective laid down under Article 39 of the Constitution which provides
for equal work.
Same work or work of similar nature under the Act means the work performed
under similar working conditions by man and woman for doing which the skill, effort
and responsibility required are the same. Under the Act it is the duty of every employer
to pay equal remuneration to men and woman workers for same work.
7.7.5 Bonded Labour System (Abolition) Act, 1976
This Act was passed with the objective of abolishing the bonded labour system and
freeing and discharging every bonded labourer from the obligation of rendering
67
Resources in Agriculture services as bonded labourer. Nowno one can be compelled by any person to work
as bonded labourer.

Under the Act, if anyone has taken any debt and is rendering his services in lieu of
that debt after he has been released, it is the duty of the government to identify,
release and rehabilitate the bonded labourers.

After the passing of this Act, if any custom, tradition, agreement or any contract is
there, the same would be void and no person or his family member can be compelled
to provide his! her or their services as bonded labourer.

There is no doubt that the various labour legislation in India have been successful at
least to some extent in protecting the interests of the working class. However, most
of the Acts become applicable only when employer-employee relationship is
established. Establishing this relationship is very difficult in the agricultural sector
which accounts for a large majority of the labour. Hence the poor agriculturallahours
are often denied the protection provided by these legislations. Apart from this the
existence of a large number oflegislations makes the proper enforcement also difficult.
Framing a comprehensive legislation to bring all the Acts under a single umbrella .
would be a mechanism to remedy this situation and hence assure that the benefits
reach to those who really deserve it.

Keralais perhaps the only state in India which has takensteps to ameliorate the
lot of agricultural labour by introducing the KeralaAgricultural Workers Act, 1974.
This is the only Act which provides security of employment to agricultural
labours. Its not only ensures prompt wages to the workers, but also regulates the
hours of work.

What is more, the Act makes ample provisions for a scheme of Provident Fund on
the pattern of the Employees State Insurance Act. It describes the machinery for the
settlement of agricultural disputes. Direct state intervention has done a lot to improve
the condition of workers like securing standardised working hours and what is more
important social dignity;

Check Your Progress 2

Note: a) Use the spaces given below for writing your answer.
b) Check your answer with the given at the end of the unit.

1) Discuss the steps taken by the Government to improve the economic condition
of agricultural labour in India .

................................. ' .
.................................................................................................................

............................................................................................................... /

68
 Labour
7.8 SCHEMES AND PROGRAMMES FOR,
BETTERMENT OF AGRICULTURAL
LABOUR
In 1950s, it was believed that economic growth will take care of all the sections of
society and the trickledown theory would work. However this did not happen.
During the 1970s, a number of special programmes for the landless agricultural
labour were undertaken but the major limitation of these programmes was that they
were reduced to mere subsidy giving programmes, lacking any planned approach to
enable the rural poor to achieve a higher level of income. Therefore, the emphasis in
the following years was put not only on evolving programmes which were
comprehensive in nature, but also on making a direct assault on poverty.

Presently, a two-fold strategy being pursued. Firstly, an effort is underway to provide

greater opportunity for the poor to participate in the growth process by focusing on
specific sectors which offer such opportunities. Secondly, poverty alleviation and
social sector programmes have been strengthened and restructured with special
programmes for the weaker sections of society, to whichthe agricultural labour
belong. Some of these special programmes presently in operation are being briefly
mentioned as follows:

(a) National Food for Work Programme

In line with the National Common Minimwn Programme (NCMP), National Food
for Work Programme was launched on November 14,2004 in 150 most backward
districts of the country with objective to intensify the generation ofsupplementary
wage employment. The programme is open to all rural poor whoare in need of
wage employment and desire to do manual unskilled work. It is implemented as a
100 per cent centrally sponsored scheme and the foodgrains are provided to states
free of cost. However, the transportation cost, handling charges and taxes on
foodgrains are the responsibility ofthe'states. The District Collector is the nodal
officer at the district level and has the overall responsibility of planning, implementation,
coordination, monitoring and supervision.

(b) Swarnjayanti Gram Swarozgar Yojna (SGSY)

SGSY launched in April 1999, aims at briningthe assisted poor families (Swarozgaris)
above the poverty line by organizing them into Self Help Groups (SHGs) through a
mix of bank credit and Government subsidy.

(c) Sampoorna Grameen RozgarYojana (SGRY)

SGRY, launched in 2001, aims at providing additional wage employment in all rural
areas and thereby food security and improve nutritional levels. The SGRY is open
to all rural poor who are in need of wage employment and desire to do manual and
unskilled work around the villageihabitat. The programme is implemented through
the Panchayati Raj Institutions (PRIs).

(d) Rural Housing - Indira Awaas Yojana (lAY)

The Indira Awaas Yojana (lAY) operationalised from 1999-2000 is the major
scheme for construction of houses for poor, free of cost. The Ministry of Rural
Development (MORD) provides equity support to the Housing and Urban
Development Corporation (HUDCO) for this purpose. 69
Resources in Agriculture (e) Pradhan Mantri Gramodaya Yojana (pMGY)
PMGYlaunched in 2000-0 1envisages allocation of Additional Central Assistance
(ACA)to the States and UTs for selected basic services such as primary health,
primary education, rural shelter,iura! drinking water, nutrition and ruralelectrification.
(1) Prime Minister's Rozgar Yojana (PMRy)
PMRY started in 1993 with the objective of making available self employment
opportunities in the rural areas and small towns is being implemented by the Khadi
and Village Industries Commission (KVIC). UnderRural Employment Guarantee
Programme (REGP), entrepreneurs can establish village industries by availing of
margin money assistance from the KVIC and bank loans for project with a maximum
cost ofRs.25 lakh.
(g) Pradhan Mantri Gram Sadak Yojana (PMGSy)
The PMGSY, launched in December 2000 as a 100 per cent centrally sponsored
scheme, aims at providing rural connectivity to unconnected habitations with
population of500 persons or more in the rural areas by the end of the Tenth Plan
Period. Augmenting and modernising rural roads has been included as an item of the
NCMP.
The programme is funded mainly from the accruals of diesel cess in the Central
Road Fund. In addition, support of the multi-lateral funding agencies and the domestic
financial institutions are being obtained to meet the financial requirements ofthe----
~-----.-.-
programme.
(h) Drought Prone Areas Programme (DPAP), Desert Development
Programme (DDP)and Integrated Wastelands DevelopmentProgramme
(IWDP)
DPAP, DDP and IWDP are being implemented for the development of wastelands/
degraded lands. During 2004-05, allocation ofRs. 300 crore, Rs. 215 crore and
Rs. 368 crore were provided for DPAP, DDP and IWDP, respectively.
(i) AntyodayaAnna Yojana (AAY)
AAY launched in December 2000 provides foodgrains at a highly subsidized rate of
Rs.2.00 per kg for wheat and Rs.3.00 per kg for rice to the poor families under
the Targeted Public Distribution System (TPDS). The scale of issue, which was
initially 25 kg per family per month, was increased to 35 kg per family per month
from April l , 2002. The scheme initially for one crore families was expanded in
June 2003 by adding another 50 lakh Below Poverty Line (BPL) families.
The other important measures taken to improve the welfare of the agriculturallabourer
are:
• The National Rural Employment Guarantee Act, 2005
The National Rural Employment Guarantee Act, 2005 (NREGA) has been passed
by the Parliament. Its salient features are as follows:
i) State governments to provide at least 100 days of guaranteed wage employment
in every financial year to every household whose adult members volunteer to
do unskilled manual work.
70
ii) Sampooma Grameen Rozgar Yojana (SGRY) and National Food for Work Labour
Programme to be subsumed within the Scheme once the Act is in force.

ID) Until such time as a wage rate is fixed by the Central govemment, the minimum
wage for agricultural labourers shall be applicable for the scheme.

iv) An applicant not provided employment within fifteen days, to be entitled to a

daily unemployment allowance as specified by the State govemment subject to
its economic capacity, provided such rate is not less than a quarter of the wage
rate for the first thirty days during the financial year and not less than a half of
the wage rate for the remaining period of the financial year. .

v) Central Employment Guarantee Council to be constituted to discharge various

functions and duties assigned to the council. Every state govenunent to also
constitute a state council for this purpose.

vi) Panchayat at the district level to constitute a standing committee of its members
to supervise, monitor and oversee the implementation of the scheme within the
district.

vii) For every Block, state governments to appoint a programme officer for
implementing the scheme.

viii) Gram Panchayat to be responsible for identification of the project as per the
recommendations of the Gram Sabha and for executing and supervising sueh
works.

ix) Central govemment to establish a National Employment Guarantee Fund. State

govemments to establish State Employment Guarantee Funds for implementation
of the scheme.

x) The scheme to be self - selecting in the sense that those among the poor who
need work at the minimum wage would report for work under that scheme.

Apart from the above, various other Programmes and schemes are also in operation,
which are meant for the development ofrural areas in general at1dagricultural workers
in particular. These programmes and scheme are implemented by the different
Ministries/Departments through N GOs.

• Leakages in the Delivery System

We know that some of the above programmes have been launched only recently.
These new programmes have replaced many other programmes that had been in
operation for about two decades or more. While it is too early to assess the working
of the new programmes, we can certainly benefit from identifying the leakages in the
delivery system of the earlier programmes.

It is a common knowledge that the benefits of the various schemes to a significant

extent do not reach the target group. Several studies have established that owing to
wrong identification of beneficiaries and leakages in the delivery system, the
performance of the programmes have been quite disappointing. Important reasons
for leakages of the schemes and programmes are stated below:

First, the beneficiaries were not involved in the process of designing, formulating,
planning and execution of the programmes. They were kept in dark. They were
Resources in Agriculture treated as a passive recipient. They were kept under the impression that they were
.receiving dole instead of considering it as their right.

Second, the beneficiaries were not made aware about the nature and character of
the programmes. No systematic effort was made to give them adequate information
about the programmes and their execution.

Third, the delivery mechanism was faulty. There was lack of transparency on the
part of the administration. As a result, the beneficiaries being weak, they always had
to bribe the officials to get their due amount, a close nexus developed among three
actors in the implementation process - (i) the Administration; (ii) the Panchayat; and
(iii) the Bank officials.

Being unorganised, illiterate, socially oppressed, landless and hence dependant on

big farmers, the poor1abour failed to assert their rights. Under such an environment,
at the stage of availing the benefits of the schemes, they had no option but to bribe
the panchayat members and other officials involved in the implementation of the
schemes.

7.9 NEW ECONOMIC POLICY AND

AGRICULTURAL LABOUR
A recent study on the subject concluded that the condition of agricultural labour is
likely to worsen in a truncated reforms which eludes land reforms and the basic
structure of production relations in the agrarian sector and which emphasises on the
agro-industries and infrastructure development by private investment depending on
profitability and market condition due to agro-climatic conditions and uneven
development of agricultural mode of production. The green revolution area reflects
mechanization, high wage and demand for labour. Backward zones reflect traditional
agriculture and labour surplus with consequent high intensity of poverty. The hill and
dryland zones show low production, shifting cultivation and denudation of forests,
degradation of ecological balance, labour surplus and acute poverty. This represents
different wage regimes and fragmented labour market which cannot be cleared by
uniform policy.

Measures for stabilisation will not benefit the agricultural workers. Reducing
subsidies for fertilizer and withdrawal of con cc ss iona Icredit will be a disincentive
for agricultural production. Deregulation of industries and entry offoreign capital
and technology may in due course, encourage investment in extractive industries
and cash crop processing. The competition with rural artisans, developed under
protection over the planning period, will be sharp. Consequently, the condition of
agricultural labour will deteriorate.

On the positive side, however, it may be said that reforms of agricultural structure,
involving land reforms and decentralized planning, as is being experimented in West
Bengal, will increase output and demand for labour and improve the condition of
agricultural labour.

Impact of New Economic Policy: Some Evidence

During the entire post-reforms period the rural unskilled labour found its living
conditions largely unchanged whereas the bulk of the rest of the community would
have seen a significant improvement.
72
 Labour
•• Rural poverty at the all-India level and for almost every state fell consistently
and sharply between the mid 1970s and the late 1980s. But this trend has
certainly been halted, if not reversed, despite the run of good monsoons since
-1988-89. Given that agricultural labourers constitute the overwhelming majority
of the rural poor, there is little doubt that large numbers of them have been
badly hit by the New Economic Policy (NEP).

~ The rural workforce structure had more or less remained unchanged for the
first two-and-a-half decades since independence and subsequently it started
shifting in terms of non-agriculture; it reached the highest level ever in 1989-90.
During the 1990s this trend has suffered a reversal. Contraction in the rural
non- farm activity means shrinkage in whatever employment opportunities had
opened up in this sector for members belonging to agriculture labour households,
thus having a depressive effect on their incomes. - ----

• Some related developments in the agricultural production sector may be noted.

(a) There has been a sharper increase in food prices compared to the general
flte of inflation. (b) The emphasis in the govezunent policy on agri-exports has
mainly led to a reduction in the area under all cereals, coarse grains and pulses
while increasing the area under non-foodgrains. .

. l! The average annual growth rate in total foodgrains production during 1990-91
and 2004-05 has only been 1.06 per cent, which is well below the population
. growth rate.resulting in falling per capita availability of foodgrains. The
consequences of such developments for vulnerable sections like agricultural
. labourers are obvious enough. A critic perhaps rightly, concludes that this class
oflabour has been' orphaned' .

Check Your Progress 3

Note: a) Use the spaces given below for your answers.

b) Check your answer with those given at the end of the unit.

I) Name any two programmes in operation for benefits of agricultural labour.

i)

iI)

2) Discuss the leakage in the delivery system of different programmes .

...................................................................................................................
• • • • • • • •• • •• • • • •• •• •• •••• •• •• •••• •• •• •• •• •• ""0 •••••••••••.•••••••••••••••••••••••••••••••••••••• ""0 ••••••••••••••••••••••• 0" .•.•.•.•.•.• ~ .•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•.•

................................................................................................................
••••••••••• 0 .•••••••••••••••••• ~ ••••••• 00 ••••••• " •••• 0." •• " •••• " ••••••• 00.0.0.00.0.0·00 ••••••••••••••••••••••••• 0 0 • o.

73
Resources in Agriculture
7.10 LETUSSUMUP
Agricultural labour is at the lowest ring of the ladder of the Indian society. His work
is seasonal; his wages and income levels are low; he~ives in unsanitary and unhealthy
co.nditions. Being economically poor he is subject 10 different types of exploitation
and repression at the hands of the powerful interest in the rural setup. Very often he
r
ends up as being bonded labour. The welfare stat in India initiated a number of
legislative measures and special schemes and pro~rammes to protect and promote
the interests of the weaker section ofthe society. But the overall positive impact of
these programmes has been limited. In view of the on-going changes in the economy,
it is imperative that steps are taken to find and promote productive employment
opportunities in the non-agricultural sector of the economy.

7.11 KEYWORDS
Casualisation of Labour A tendency wherein increasing number oflabour
are engaged on casual basis rather than on
permanent basis.

Main Workers Those persons who get employed for more than
183 days a year.

Marginal Workers Those persons who getemployed for less than

182 days a year.

Marginalization of Labour A tendency of growing reduction in the number

of main workers and corresponding increase in
marginal workers.

Social Security A policy initiative that ensures that social

means are used to prevent social deprivation and
vulnerability to deprivation.

7.12 SOME USEFUL BOOKS/REFERENCES

Dhingra, Ishwar C. (2006). The Indian Economy, 20th Edition. Sultan Chand,
New Delhi

Government of India, Economic Survey 2004-05.

Government of India, National Commission on Labour, Report

7.13 ANSWERSIHINTS TO CHECK YOUR

PROGRESS
Check Your Progress 1

1) Cultivators, agricultural labour, workers engaged in forestry, fishing, livestock

etc.

2) Agricultural labour are unorganised and unskilled.

· 3) Rapid growth of population and exploitation oflabour ofland lords. Labour

Check Your Progress 2

1) Fixation of minimum wages, special area prograriunes, land reclamation and

settlement, .

Check Your Progress 3

1) National Road for Work Programme and National Rural Employment

Guarantee Scheme. ."

2) Benefits of various schemes do not reach to the target group. Several reasons
can be cited for this, Important one non involving of beneficiaries in planning
and execution of programme, non-awareness among beneficiaries and facu1ty
deliverymechanism.

75